Marinade Finance releases new proposal to address MEV problem

BlockBeats news, on December 11th, Marinade Finance, one of the largest stake platforms on Solana, is currently discussing a new governance proposal to address malicious validators and tackle the issue of maximal extractable value (MEV) on the network. Marinade Finance believes that MEV is both a challenge and an opportunity as it can help improve network efficiency by optimizing liquidity and rewarding validators. On the other hand, uncontrolled MEV can lead to negative user experiences such as front running, sandwich attacks, and centralization control, undermining decentralization. The democratization of MEV will involve creating systems and practices to ensure a more fair distribution of opportunities and rewards provided by MEV. The goal is to prevent power from being concentrated in the hands of a few participants and to ensure that a wider range of stakeholders can benefit from activities related to transaction ordering. To address the issue of sandwich attacks and other side effects of MEV, Marinade’s proposal presents a ‘balanced’ approach that focuses on reducing harmful MEV while redistributing it as fairly as possible through an open market. Additionally, the proposal advocates for funding MEV research through the allocation of financial resources from the MNDE DAO to dedicated research programs to enhance transparency and data.